The "GOOD" GPT talent is already gone. The really good ones (and decently compensated because of it) were pushed out starting in 2016. All that is left are the third string scrubs, the new hires grads, and the offshore jokes. Not a place to work any longer. The CEO k–led the company.
6 replies (most recent on top)
I agree with the person who noted the Pershing Square takeover bid was the tipping point. Carlos and his team saved their jobs by promising the moon to Wall St. They are just doing a slower motion version of what Ackman would have done if he got control. ADP’s best days are behind it. They sold off every piece of the company they could. Now they will grind employer services into the ground and get rich doing it.
Unfortunately, the big picture of ADP is dismal. These neverending layoffs of experienced professionals are cutting the heart out of the company by eliminating the company's knowledge base. The aim was, is, and will continue to be attempts on saving on labor costs by pushing out the real experts simply because they make too much money, and replacing them with cheap labor, including even cheaper outsourced labor. That is the way that ADP decided to "trim and get lean". But by hiring inexperienced cheap labor to get lean is like replacing your experienced tough bodybuilders with underfed skinny and skeletal weaklings. Whoever made the decision to do this, whether Carlos or other "experts" in various advising companies, it was just plain wrong.
Now ADP is paying the price by having more angry clients and a weak and dysfunctional labor force that is a constant revolving door of new employees coming in and going out. Umm.. that's really not the way to run a company, no matter what Carlos or other outside "experts" say.
ADP was doing okay with it's values until a few years back when Pershing Square tried to take over.
When Bill Ackman was trying his hostile takeover Carlos and rest of the leadership wanted to show what kind of a company they can transform ADP into. Made tall promises and "won" their positions back.
The result is that there is constant pressure to keep meeting those promises. Let's look at what Pershing Square brought into light:
ADP’s Employer Services business is underperforming its potential
ADP can significantly improve its performance and competitive position
with improved operational efficiency and greater technology leadership
Employer Services, currently earning a ~19% operating margin, should
achieve 35% or greater margins
Employer Services’ growth can increase to ~7%+
Achieving ADP’s structural potential will drive enormous shareholder value
The long-term health of ADP will be driven by an improved and superior
culture, employee engagement, innovation, and operational efficiency
ADP’s transformation can be accomplished without undue risk
The transformations of Solera (f.k.a. Claims Services) and CDK (f.k.a. Dealer
Services), previously owned by ADP, provide a roadmap
To try and address each of these concerns Carlos started looking at high paid consulting firms to advise. That includes McKinsey, E&Y, BCG. Each of these consulting firms has taken over significant part of decision making for Carlo's team. Not necessarily bad but a fact. These consulting firms are telling the leadership team the need to trim, get lean and use as much technology as possible.
ADP is not a technology company yet but has potential to become one. However with constant reduction in force on GPT how can you expect to retain good talent once market improves? Wish constant reduction in business folks you cannot expect to serve those wonderful clients.
A better focus should be on growth. I know it sounds crazy in these difficult times but now is the tine to invest in growth and not just react to the market situation. Just imagine how much people would have become loyal and excited that their firm took care of them during difficult times, gave extra $1000 and gave innovative steps to be ready for the big transformation.
Easier said than done. Let's all be aware of the big picture.
Yup i agree
Yep, dumping their employees out on the street in the middle of a pandemic. Record unemployment and even jobs with basic qualifications on LinkedIn have hundreds of applicants each.